Fixed rate borrowers finally get to switch

Fixed rate borrowers finally get to switch

The loans of thousands of property buyers who locked into fixed mortgage rates before the Reserve Bank cut the cash rate three years ago are finally due to expire.

by webmaster

April 15, 2011

More than 100,000 Australians committed to fixed rates of more than eight per cent just before the global financial crisis, missing out on huge reductions in interest rates.

But many of these are now coming off those fixed rates and seeking a better offer, Loan Market chief operating officer Dean Rushton said.

“Thousands of people who fixed their rates during 2007 and early 2008 when the cash rate reached 7.25 per cent have had to sit back and watch interest rates drop dramatically to combat the GFC,” he said.

“These customers have been waiting for years to get a better deal.”

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Mr Rushton said these investors and home buyers would be met with a range of financing options given the current market conditions.

“The good news for these borrowers coming off fixed rates is that they are entering an extremely competitive market where lenders are wooing customers with a range of special offers and rate discounts,” he said.